The remittance basis only applies to income that is taxed under Schedule D Case III of the Taxes Act.
Regulated European Funds are taxed under Schedule D Case IV, so the remittance basis does not apply to either income or gains in respect of same.
Google Section 71 TCA 1997...that’s the relevant legislation.
It wouldn’t be a remittance of the whole lot; it’d be future income and gains that would be taxable as normal.
Hi, I am new investing. After doing a lot of homework, I would like to buy ETFs. But I afraid of all the tax rules discussed here. I would like to buy vanguard life strategy fund. I would like to invest every month. From my understanding, I have to notify the revenue when I buy first buy this ETF. Then I have to pay 41% tax every 8 years on my dividends?
Not quite.No, you pay 41% tax annually on dividends and 41% tax every 8 years on gains.
I don't understand this reply at all. Do you mean, one needs to pay the tax (41%) only once in 8 years?Not quite.
It’s 41% exit tax on all dividends/gains, with a deemed disposal every 8 years. Dividends obviously roll up in an accumulating fund.
Thanks for the clarification, so if I buy the aacumulating ETFs now, I no need to worry about the tax for the next 8 years??If it is an accumulating fund, then there are no dividends paid out, so no tax on dividends
There is Exit tax at 41% on any gains recorded on disposals or on the gains made by deemed disposals every 8 years
Thanks for the reply. You mean for the first 8 years if I paid tax on gains, and if losses occur in the next subsequent 8 years, then I can claim back some tax??One point on the 8-year deemed disposal rule that I think people often miss is that you can submit a claim to Revenue for overpaid tax if the fund subsequently falls in value and you cash in your fund.
Sort of!Thanks for the reply. You mean for the first 8 years if I paid tax on gains, and if losses occur in the next subsequent 8 years, then I can claim back some tax??
So, if I understand correctly, a non-domiciled Irish resident who purchases an Irish domiciled ETF with foreign money is not remitting the money into Ireland, but will simply pay taxes on capital gains/income deriving from the ETF? I have extensively researched this topic online and found very little … many thanks in advanceGoogle Section 71 TCA 1997...that’s the relevant legislation.
It wouldn’t be a remittance of the whole lot; it’d be future income and gains that would be taxable as normal.
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